Tuesday 21 May 2019

NPPA caps prices of 9 non-scheduled drugs

           In continuation to its efforts to bring down drugs prices, India’s drug pricing regulator on Wednesday capped the prices of 9 non-scheduled cancer drugs by up to 87%, capping their trade margin at 30%.
The National Pharmaceutical Pricing Authority (NPPA) under the ministry of chemicals and fertilizers has put out the list of 9 anti-cancer non scheduled medicines whose MRPs have been cut by up to 87 %.

The new list of drugs is in continuation to the government’s efforts to curb profiteering on these vital drugs. In February this year, the government had capped 42 cancer drugs at 30%. The move was expected to reduce prices of cancer drugs by 85% and covered 72 formulations and 355 brands. According to the government, the price cut was expected to benefit about 22 lakh cancer patients in India and would result in annual savings of around ₹800 crore to the patients.
The NPPA has approved a formula which restricts the trade margin of the selling price by up to 30%.
The NPPA currently fixes price of drugs on the National List of Essential Medicines under schedule-I of DPCO. So far, around 1,000 drugs have been price-capped through this mode.
The trade margin rationalisation has been rolled out as proof of concept, stressing on the new paradigm of self-regulation by the industry.

Overview: NPPA has capped the prices of 9 non-scheduled cancer drugs by up to 87%, capping their trade margin at 30%. The new list of drugs is in continuation to the government’s efforts to curb profiteering on these vital drugs.
Background:
The NPPA currently fixes price of drugs on the National List of Essential Medicines under schedule-I of DPCO. So far, around 1,000 drugs have been price-capped through this mode.
The trade margin rationalisation has been rolled out as proof of concept, stressing on the new paradigm of self-regulation by the industry.
What is the “Drugs (Prices Control) Order (DPCO)” ?
The Drugs Prices Control Order, 1995 is an order issued by the Government of India under Sec. 3 of Essential Commodities Act, 1955 to regulate the prices of drugs.
The Order interalia provides the list of price controlled drugs, procedures for fixation of prices of drugs, method of implementation of prices fixed by Govt., penalties for contravention of provisions etc.
For the purpose of implementing provisions of DPCO, powers of Govt. have been vested in NPPA. Later, the Drugs (Prices Control) Order (DPCO) 2013 was notified.
Why the DPCO is issued under Essential Commodities (EC) Act ?
Drugs are essential for health of the society. Drugs have been declared as Essential and accordingly put under the Essential Commodities Act.
Are all the drugs marketed in the country under price control ?
No. The National List of Essential Medicines (NLEM) 2011 is adopted as the primary basis for determining essentiality, which constitutes the list of scheduled medicines for the purpose of price control. The DPCO 2013 contains 680 scheduled drug formulations spread across 27 therapeutic groups. However, the prices of other drugs can be regulated, if warranted in public interest.
What is NPPA and its role ?
  • National Pharmaceutical Pricing Authority (NPPA), was established on 29th August 1997 as an independent body of experts as per the decision taken by the Cabinet committee in September 1994 while reviewing Drug Policy.
  • The Authority, interalia, has been entrusted with the task of fixation/revision of prices of pharmaceutical products (bulk drugs and formulations), enforcement of provisions of the Drugs (Prices Control) Order and monitoring of the prices of controlled and decontrolled drugs in the country.
Why are the prices of medicines rising ?
The reasons for rise in the prices of medicines are :
  • rise in the price of bulk drugs;
  • rise in the cost of excipients used in the production of medicines like Lactose, Starch, sugar, glycerine, solvent, gelatine capsules etc.;
  • rise in the cost of transport, freight rates;
  • rise in the cost of utilities like fuel, power, diesel, etc.;
  • for imported medicines, rise in the c.i.f. price and depreciation of the Rupee;
  • changes in taxes and duties.

Sources: The Hindu.
Special News Article on this Issue:-
National Pharmaceutical Pricing Authority (NPPA) has slashed the prices of 9 non-scheduled cancer drugs by up to 87 per cent. The decision is in continuation of the efforts to bring down drugs prices.
An office memorandum issued by the Drug pricing regulator in New Delhi said, the maximum retail price of 500 mg chemotherapy injection pemetrexed which is used to treat lung cancer, has come down from 22 thousand rupees to 2 thousand 800 rupees. 
The price of 150 mg Erlotinib tablets will cost now cost 2 thousand 400 rupees instead of 8 thousand 800 rupees.
The new list of drugs is in continuation of the government’s efforts to curb profiteering on these vital drugs and to make cancer cure affordable for patients and their families. In February this year, the government had capped 42 cancer drugs at 30 per cent.
At least 72 formulations and more than 390 brands reduced costs following the order. The price cut is expected to benefit about 22 lakh cancer patients in India and will result in annual savings of around 800 crore rupees to the patients.
The NPPA has approved a formula which restricts the trade margin of the selling price by up to 30 per cent.

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